The Asteco Q1 2024 real estate report predicts a promising future for the Abu Dhabi real estate sector, with gradual growth expected in the coming months.
According to Asteco, affluent areas have witnessed rental hikes of 7 to 10 per cent, highlighting the varying advantages of villas and apartments for property sales in Abu Dhabi.
The report reveals that during the first quarter, Abu Dhabi saw the completion of 800 residential units spread across different Investment Zones, with a notable concentration in Al Raha Beach.
A standout development was the launch of Yas Canal, a new large-scale villa project in the same area, expected to be finished by Q4 2027, providing 1,146 units exclusively for UAE nationals.
Throughout Q1 2024, the rental market for villas and apartments remained generally steady, with prime developments experiencing significant demand, resulting in rental increases of 7 to 10 per cent compared to the previous year, especially for new contracts.
The sales market in Abu Dhabi saw a substantial uptick in transactions during the first quarter of 2024, with approximately 2,660 deals recorded for apartments and villas, marking a notable 17 per cent increase compared to the same period last year.
Off-plan sales constituted a considerable portion of these transactions, representing around 1,840 deals, or roughly 69 per cent of the total, indicating a 2 per cent growth from the previous quarter.
Apartment sales comprised approximately 73 per cent of the total off-plan and nearly 78 per cent of completed property transactions during this period.
Average villa sales prices experienced modest increases, ranging between 1 per cent and 3 per cent on a quarterly basis. However, year-on-year growth was more substantial, reaching 10 per cent to 15 per cent.
The upward trajectory in rental rates for high-quality office space, which began in 2023, continued into 2024, with some developments experiencing increases ranging from 5 per cent to 7 per cent, influenced by factors like unit size and payment terms.
The limited availability of premium office space in Abu Dhabi, coupled with growing demand from expanding businesses driven by government initiatives to attract foreign investment, has contributed to the surge in rental rates.
